Repeal of carbon tax will lower energy prices


The discussion over energy prices and how they will react to the repeal of the carbon tax has been ongoing and now Environment Minister, Greg Hunt, has weighed in with his view.

Mr Hunt has suggested that getting rid of the carbon tax will lower electricity prices “immediately”, going against the Business Council of Australia’s (BCA) recent assertion that it will take time.

“It should happen immediately”, he said while being interviewed last week on ABC Radio 702 Sydney.

"We'll look through our discussions with the electricity suppliers, but the statement from the Electricity Supply Association yesterday was clear and categorical, so I think their words are the strongest words."

The words that Mr Hun was referring to are those that appeared in a recent statement from the Electricity Supply Association. In the report it is suggested that: "Savings from [carbon tax] repeal will begin to flow through to customers almost immediately from the date of effect in competitive markets. Full savings will pass through over time."

However, the BCA took a slightly more conservative approach when estimating the time it would take for savings to filter through, suggesting it could take at least three months.

In a further development, the ACCC will monitor energy costs, at least in the short term, in a bid to make sure that energy costs do come down.

At the moment it would appear to be a case of mixed news for consumers. While it appears as though energy prices are on the way down, the extent and the timescale are still very much undetermined.

For the most competitive energy quote available get in touch with one of the team at IF Power and let them help you secure yourself the best possible deal. 

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